Not-for-Profit Organizations – Transition to the New Accounting Standards (Part III)
This course provides an overview of the transition issues related to the application of the new accounting standards for not-for-profit organizations (NFPOs) under Part III of the CICA Handbook.
The Accounting Standards Board (AcSB) finalized the new accounting standards for private not-for-profit organizations in December 2010. The standards clarify the AcSB’s position that there should be no differences in accounting between profit-oriented enterprises and not-for-profit organizations when the circumstances and transactions are the same, other than for matters included in the 4400 series of CICA Handbook Sections. Part III for NFPOs is referenced to Part II, Accounting Standards for Private Enterprises, as its base. It should be noted that a NFPO can also elect to apply Part I, IFRS.
These standards are effective January 1, 2012. The existing accounting standards in Part V of the CICA Handbook will be retained for use by not-for-profit organizations until they have all adopted either the new Part III or IFRSs. First-time adoption of this part of the CICA Handbook is mandatory for annual financial statements relating to fiscal years beginning on or after January 1, 2012.
The general rule is that the changes must be applied retrospectively, with restatement. This course reviews the transition guidance.
Who Will Benefit:
Those who are responsible for preparing, analyzing or auditing financial statements for smaller NFPOs.
Identification of choices to be made upon transition
Identification of significant changes from current GAAP, including financial instruments
Comprehensive understanding of CICA 1501, first-time adoption by not-for-profit organizations, in Part III
Ability to prepare the required disclosure upon transition
Introduction and effective dates
Overview of Part III of CICA Handbook
Review of Part II of CICA Handbook as it would relate to NFPOs
Accounting for transition:
Opening balance sheet
Exemptions from other standards
Exceptions to retrospective application
Note: Familiarity with the current NFPO standards in Part V, and Accounting Standards for Private Enterprises in Part II of the CICA Handbook is required.